NCAA New Guidelines Clarifying NIL Policy - Student Athletes

Schools struggling to apply Name, Image, and Likeness (NIL) guidelines from the National Collegiate Athletic Association (NCAA) recently received some relief, as the organization presented a clarifying document for Division I member schools’ involvement in NIL activities for student-athletes (SAs).

Big Five Take Aways From the NCAA NIL Policy

1. Education and monitoring for current Student Athletes—

   Schools can and should educate current SAs in financial literacy, taxation, social media best practices, and entrepreneurship;
   As appropriate, schools should also require SAs to report their NIL work to their athletic departments.

2. School support for Student Athlete NIL activities—

   Schools can tell their SAs about NIL opportunities.
   Schools can work with NIL service providers to match SAs with such opportunities.
   Schools can provide stock photographs or graphics to SAs or NIL entities.
   Schools can arrange meeting space for SAs and NIL entities.
   Schools can promote SAs’ NIL enterprises if the SA or NIL entity pays for advertising.
   Schools cannot engage in negotiations for either NIL entities or SAs.
   Schools cannot provide free services (such as tax preparation, contract review, or graphic designers) to SAs.
   Schools cannot offer equipment to SAs for their NIL activities.
   Schools cannot allow SAs to promote NIL activity as part of their required athletic events.

3. School involvement with collectives and other NIL entities—

   School employees, including coaches, can assist NIL entities with fundraising (personal appearances, autograph sessions).
   School employees cannot make cash donations to NIL entities, accept employment by them, or have any ownership stake in NIL entities.
   Schools may request donations to collectives and NIL entities, but cannot request the donations be made to specific sports or SAs.
   Schools can provide game tickets or suites to NIL entities through sponsorships.
   Schools cannot offer game tickets or suites as incentives.

4. Enforcement of NCAA rules related to NIL policy—

   Only clearly contrary violations predating this clarification are to be pursued by enforcement staff
   New standards for allegations and conclusions have also been adopted.
   For reports of impermissible conduct, each school will be responsible for demonstrating that reported violations did not occur; the presumption by enforcement staff will be that violations occurred.

5. Third-party administration of NIL activities—

   The Division I board accepted a report about the pros and cons of having an independent, third-party administrator collecting SA NIL disclosures.
   The board chose not to take further action at its October meeting.

   Schools continue to thread the needle in the ever-evolving NIL environment. Texas A & M recently opened a NIL apparel shop, offering SA jerseys for sale, with the SAs collecting a portion of each sale. The University of Miami’s Hurricanes may be flush with wealthy NIL supporters but are struggling on the field. And Texas Tech seems to be finding its groove with collectives, with its Matador Club acquiring NIL contracts for more than 120 SAs averaging $19,900 apiece.

   NIL entities, schools, and SAs can get answers to their NIL questions by telephoning or texting my office at (972) 244-3210, or by sending me a message.